EDB market promotion for footwear industry in EU

Anjana Samarasinghe

FOOTWEAR INDUSTRY: The Export Development Board (EDB) has organised a market promotion and business development programme for the local footwear industry in the EU market from September 12 to 20.

Assistant Director of EDB K. De Saram said this programme has targeted Italy, France and Germany.

The main objective of the programme is to make aware of the GSP capabilities for the footwear industry in the EU market and increase joint ventures and sub contracts in the EU market.

UK, Italy, France are major markets for Sri Lanka. Germany was a huge market for the local industry but Sri Lanka lost it due to the stopping of GSP concessions for footwear and the Chinese footwear market.

Nearly five years ago Sri Lanka was catering to the indoor footwear market in Germany. At present there are only few exports to Germany. Through this business mission, the EDB expects to develop business opportunities in the German market she said.

Speaking about the Italian market she said that Italy is an ideal market for local footwear industry. In Italy, there is a domestic footwear industry and Sri Lankan industry could supply footwear parts such as shoe uppers for their domestic market.

There are local companies who have collaborated with Italian footwear companies. There will be 14 participants and six participants will represent the SME sector. The participation of SMEs will be sponsored by the EDB.

Through this business mission, the EDB expects to orientate and expose EU markets for local SMEs. They expect to organise factory visits, visit to department stores, and one to one business meetings with potential buyers and business chambers. Plans have also been made to participate in the GDS International Shoe Fair during the programme.

According to the EDB, Sri Lanka has exported footwear to the value of nearly Rs. 611 million in the first half of this year and it was Rs 565 million last year. This is 8.18% growth compared to last year.

This is mainly due to GSP concessions granted for the footwear industry last year and the imposition of antidumping duties to China and Vietnam, De Saram added.

The Secretary to the Ministry of Enterprise Development and Investment Promotion and Chairman EDB will accompany the delegation. They will address Trade Chambers, Business Associations, Sri Lanka Business Councils in these countries to promote the Sri Lankan products which has obtained GSP facilities.

In 2005 total export earnings through footwear in the EU market recorded was Rs. 874 million and it was Rs. 632 million in the previous year.